Pernod Ricard expects sales in Europe and the US to improve this year, as it
spends more on marketing and the world economy continues to recover.

Champagne sales started to pick up in the first half of 2010, with the company's main brands, Mumm and Perrier Jouet, returning to growth, said chief executive Pierre Pringuet.

The company's business in Asia, which was the biggest division by sales in the year to the end of June, will also be one of its "key strengths" this year, Mr Pringuet said.

The maker of Jameson whiskey and Martell cognac has seen recovery "at a slow pace" in the US, and said Europe has picked up faster than expected after the financial crisis. European sales outside France, Pernod's home market, climbed 1pc in the second half of the financial year, compared to a 10pc decline in the full year.

Pernod reported a 4pc increase in profit, excluding acquisitions, disposals and currency movements, ahead of the 3pc gain the company predicted in April.

Net profit slipped 1pc to €1bn (£833m) in the year, and sales fell 2pc to €7.08bn. Excluding currencies and disposals, sales rose 2pc in the year, and 9pc in the second half.

However some analysts were disappointed the results did not beat forecasts and that Pernod did not give more guidance on sales this year.

"I don't think there is any room for disappointment," Mr Pringuet said. "Our two priorities were to get behind the brands and to reduce our leverage, and we did both of those things."